Arbitration: The Methods of Handling Disputes and Controversies is a fairly known ADR tool that allows the parties to solve the disputes apart from courts. This has been widespread especially in many industries. Assignable to the effectiveness, flexibility, and, at most times, the low cost that accompanies the process.
What is Arbitration?
It is a way that deviates from the public bureaucratic model in which the warring parties submit the handling of their conflict to one or more other parties called arbitrators. Last of all, It is settled without trial, and most frequently is less rigorous and lengthy than litigation.
The Arbitration Process
It begins when people concerned agree to refer their dispute to arbitration. It may be entered into with no previous conflict, in which case contractual provisions will be adopted or entered into after the conflict has arisen. When the dispute is started the parties select an arbitrator or a panel of arbitrators to hear the case.
During the proceedings, legal and factual arguments, evidence in support of the cause of the respective party is tendered. The arbitrator then similarly as the referee evaluates all the information received and arrives at or delivers the ‘the arbitration award’. This award is in most of the cases final and non-reviewable and the grounds of an appeal are often narrowly defined.
Types of Arbitration
It can assume various types according to the requirements of the two parties to the dispute. Some common types
Domestic Arbitration
This involves disputes between parties within the same country, governed by national arbitration laws.
International Arbitration
Used for conflicts between parties from different countries, often governed by international conventions.
Ad Hoc Arbitration
In this type, the parties determine their own rules and procedures for the process.
Institutional Arbitration
Conducted under the support of an arbitral institution, which provides rules, procedures, and administrative support.
Advantages of Arbitration
It offers several benefits that make it an attractive option for dispute resolution. It has several advantages that make it to be favored in solving disputes:
Efficiency
It proceedings have also been known to be less time consuming than court litigation; in as much as it is in terms of result.
Flexibility
It is more parties friendly in that the party has a considerable say as to the appointment of the arbitrators as well as the process to be followed.
Challenges and Hiccups
Despite its advantages, arbitration faces some criticisms: But for all of its benefits, here are some criticisms that are often levelled against.
The Future of Arbitration
This is particularly so given the on-going expansion of international trade and business. The growing pressure on the domestic legal systems evidenced by ever rising arrears of cases. There is also development that has occurred over the years where there is an increased use of online platforms.
Conclusion
All in all, arbitration can be viewed as a viable remedy to traditional litigation allowing the parties to pursue their dispute more flexibly, quickly and often successfully. As it has its weaknesses and criticism, so it has its strengths that are essential in the present-day world of law and business.
